Cooling-off period

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This fact sheet is general information only. If you need a lawyer, try LawMatch™ a free service that matches you with a lawyer who meets your legal needs and preferences.

What's a cooling-off period?

Most purchasers have the right to get out of the contract in certain circumstances - this is called a "cooling-off period" (check the law in your State or Territory). The rules about cooling-off periods vary depending on the State or Territory law. In general, they only apply when:

• the buyer notifies you in writing within a defined number of clear business days after the contract is signed;
• there is a private sale, not an auction;
• it is a domestic property, it does not apply to a commercial property or a farm;
• the house/land costs less than a specified amount.

Note: The cooling-off period may not apply if the buyer consulted a lawyer before signing the contract.

What's "clear business days"?

Don't worry what this means - just remember that the days begin at midnight of the day the buyer signed the Contract of Sale or Contract Note (or similar), and includes the next specified number of days, but does not include a Saturday, Sunday or public holiday. Remember, it runs from the time the buyer signs the contract, not from when you sign!

Will I have to return the deposit?

The buyer may not be entitled to a full refund. Get advice from your lawyer or real estate agent about any money (or percentage of the purchase price) you are permitted to keep.